The crypto community has been closely monitoring the recent trend of German authorities selling their substantial cryptocurrency holdings. These transactions, often amounting to billions of dollars, have garnered significant attention. On July 8, a new record was set.

  • Saxony sells confiscated Bitcoins
  • 27,000 out of 50,000 Bitcoins reportedly sold already
  • High selling pressure affects the original cryptocurrency

For years, German authorities have held a large Bitcoin reserve, primarily composed of confiscated crypto assets. They have taken advantage of the recent price surge to convert these cyber-assets into state revenue. Recent events have revealed the extent of the Bitcoin holdings of the German authorities and their serious approach to these sales.

Largest Bitcoin Sale in Saxony

The State Criminal Police Office (LKA) in Saxony has been particularly active in liquidating its Bitcoin holdings. On July 8, a total of 12,000 Bitcoins were sold. According to Arkham Intelligence data, this sale generated approximately 687 million US dollars, marking the largest single-day sale by Saxony to date. It is believed that the authorities are selling their Bitcoins primarily through over-the-counter (OTC) desks, rather than traditional crypto exchanges like Coinbase, Kraken, or Bitstamp. This method likely helps minimize the impact on market prices.

Bitcoin Market Reacts Negatively to Sale

Throughout the day, the Bitcoin price dropped by about two percent but quickly recovered, gaining nearly four percent. The Bitcoins held by the LKA were seized from the alleged operators of the illegal streaming platform Currently, a 40-year-old German and his 37-year-old Polish accomplice are facing legal proceedings. The authorities informed “BTC-ECHO” that the proceeds from the seized assets would be transferred to the respective state treasury where the competent court is located, in accordance with Section 60 of the Penal Code.

Significant Bitcoin Reserves Remain with LKA Saxony

After the recent sale, the LKA still holds around 27,000 Bitcoins, down from the original 50,000. The continuous sales indicate that Saxony’s authorities are persisting with their liquidation strategy to incorporate the proceeds into the state budget. The cryptocurrency market remains sensitive to such large sales but also demonstrates a notable ability to rebound.

State Bitcoin Sales Among Many Pressures on Market

The massive sales of Bitcoin holdings by authorities not only in Saxony but also across Germany and the USA, are likely among several factors contributing to the recent decline in crypto prices. Amid questionable demand for Bitcoin ETFs, anticipated selling pressure from the Mt. Gox case, and uncertain interest rate prospects, Bitcoin recently fell to its lowest level since February. At times, Bitcoin prices dropped below 54,000 US dollars.

As of July 10, 2024, with the current price at 57,490 US dollars, Bitcoin is still up by 37 percent since the beginning of the year, although it has significantly retreated from its record high of 73,798 US dollars on March 14.